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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dan Meleney who wrote (38855)	8/17/2010 3:44:50 PM
From: E_K_S	Respond to of 78652

Hi Dan - I too am learning how to value these companies. I am starting a few very small tracking positions in a few of these companies specifically GMXR and MHR. MHR had a conference call today explaining the state of their business. They also have loads of new financing to carry them through until they can get their cash flow from operations (wells & pipe lines) to cover their on going expenses. Here is another more conservative way to value these marginal earners: Message 26759467 My thought is to buy a basket of these companies that have proven reserves "in the ground" and/or own land where other drillers have shown proven reserves. The bulk of my investing dollars in this sector are with the larger integrators, pipeline gathering & distribution MLPs and shippers (tankers & LNG ships). I am looking for dividends and monthly income (MLPs provide good income)and capital appreciation. The integrators have had good capital appreciation over the years but I believe my small basket of e&p companies can eventually provide a better capital appreciation kicker to my portfolio. EKS

To: Dan Meleney who wrote (38855)	8/17/2010 4:52:23 PM
From: Paul Senior	Read Replies (1) \| Respond to of 78652

You asked for the highest reserves to market cap. Now I infer you also want these high reserve to market cap companies to also show positive cash flow and earnings, have no or not too much new stock or debt, and not have too short a corporate history. Yes! I want all that too. You only left out that the company should also pay a dividend and have insider buying. Frosting on the cake would be a rumor that Buffett was buying in the area. Where are all these companies? -g-